Sustainability Report

Production and

Continuous quality improvement along the value chain

Management approach

The continual improvement of the quality of all processes along the value chain is a core element of Vetropack’s corporate philosophy. Continual process improvement holds the key to the company’s ability to meet rising customer expectations and increase the efficiency of production processes, and thus keep Vetropack competitive over the long term.

Although ensuring the continual improvement of quality is a management task, continual improvement processes are also well established at all plants, where they are actively supported by the respective workforces. For example, internal specialist groups at various facilities work on projects to improve occupational safety, environmental protection and quality assurance. The Quality Assurance specialist group, which consists of members of the quality assurance teams at all plants, is responsible for improving product quality. The approach utilised by the group is aligned with the Vetropack mission statement, the corporate strategy and various process descriptions and work instructions.

Progress is assessed by means of various quality indicators, such as the number of customer complaints, for which clear annual targets have been set.

Digitalisation and automation

Management approach

Vetropack is systematically exploiting the opportunities offered by increasing digitalisation and automation in order to improve its performance with regard to quality, productivity and cost reductions. Digitalisation and automation also offer additional benefits in that they relieve employees from performing routine tasks, help increase occupational safety, and ensure the efficient exchange of data with suppliers and customers.

The Head of Finance, Controlling, Information Technology and Procurement, and the General Manager for Technology and Production, are jointly responsible for developing and implementing digitalisation and automation projects. Whenever a digitalisation or automation solution displays potential for process optimisation, Vetropack will initiate a new investment project, provided the solution in question is expected to lead to an adequate return on investment (ROI). Successful implementation of digitalisation and automation solutions requires Group-wide harmonisation of work and process flows and the continual training and professional development of employees whose job profiles are affected by digitalisation.

Innovation through customer-specific products

Management approach

Vetropack aims to create added value and firmly establish its brands by offering its customers innovative, distinctive and sustainable glass packaging products. Ensuring continual customer satisfaction is crucial if Vetropack’s position in its European core markets is to be maintained and steady profitable growth is to be achieved.

Vetropack Story: Designing and constructing glass packaging

Vetropack listens to its customers in order to be able to understand their requirements and successfully further develop and implement its strategy. The company’s sales team is responsible for implementing Vetropack’s customer-focused sales and marketing strategy. Vetropack stays in contact with its customers on a daily basis and conducts customer satisfaction surveys every two years. The company also participates in various trade fairs and organises innovation events and exhibitions that showcase its expertise. Vetropack’s Production, Planning, Quality, Design and Finance departments work together to calculate the costs of successfully developed products and define the profit margins for these.

Vetropack Story: Review of BrauBeviale and SIMEI 2019

The company creates new products together with customers, and in doing so also continually improves its skills, abilities and expertise. One example here is the Heineken “World Bottle” (WOBO), which is shaped like a brick and can be employed as a construction material after it’s used. The systematic approach for customer-specific innovations has yet to be fully established, however, as potential for further improvement exists.

Vetropack is looking to have products that are less than one year old account for 5 % of its sales. In addition, the company’s pricing strategy is designed to improve the product mix. For this reason, low-margin products are redeveloped with the aim of making them more profitable, or else are removed from the portfolio altogether.

Once every six months, Vetropack also reviews profitability as it relates to its segments, customers and the countries in which it operates in order to evaluate price levels and the suitability and profitability of its products. The most recent customer survey was carried out in 2019. Here, a specialised agency supported a process in which 112 personal interviews were conducted with key customers in all core markets. The results show that Vetropack was rated by customers as “good” or “very good”, which puts the company above the competitive average. Order processing, customer focus and the close proximity of production plants were cited as the company’s most important strengths. The knowledge gained from the survey will help Vetropack launch targeted improvement initiatives designed to increase customer satisfaction even further.

Vetropack Story: The 2019 customer benefit analysis

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